USDA's Farm Service Agency Offering One-Time Installment Payment Deferral Option
Saturday, October 3rd, 2020 -- 10:14 AM
To assist Farm Storage Facility Loan borrowers experiencing financial hardship from the pandemic and other challenges, the USDA's Farm Service Agency is offering a one-time annual installment payment deferral option.No fees or prepayment penalties apply for borrowers who choose this FSFL loan flexibility option. Eligible borrowers can request a one-time only annual installment payment deferral for loans having terms of three, five, seven or ten years. The installment deferral option is not available for 12-year term loans. The FSFL installment payments will remain the same, except for the last year. The original loan interest rate and annual payment due date will remain the same. However, because the installment payment deferral is a one-year loan term extension, the final payment will be higher due to additional accrued interest.
Borrowers interested in exercising the one-time annual installment deferral option should contact FSA to make the request and to obtain, complete and sign required forms. FSFLs provide low-interest financing for producers to store, handle and transport eligible commodities. (Wisconsin Ag Connection)
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